CreditWorks December Insights is now available here.
Data for the period ending 31/12/2022 has shown a further increase in 60 and 90 day arrears. While we see an increase in December arrears each year, the trend line is indicating further deterioration as we move into 2023. Initial January data continues to support this trend, with the Auckland floods also impacting on payment performance.
In the past week we have also seen another construction company A H Construction Services with over 100 staff entering Voluntary Administration. As quoted in the weekends Stuff article “If the company did fold, it would join 183 other construction companies that the Ministry of Business, Innovation and Employment (MBIE) recorded going bust between the start of August and the end of January.” From our view the construction industry is a lead indicator of the state of New Zealand domestic economy.
Please note that due to the vast amount of data required to produce these reports, most of which is accessed from a multitude of external sources, there is an inevitable time delay in their generation. However we prefer to defer their publication in favour of ensuring greater accuracy.